The Naval Sea Systems Command (NAVSEA) on Sep. 18 awarded two fixed-price firm target modifications to Lockheed Martin [LMT] and Austal USA for one and two FY 2018 Littoral Combat Ships (LCSs), respectively.
The Navy said it would not release the contract values because it may release a competitive solicitation for additional LCSs in FY 2019 so the specific contract dollar numbers are “considered source selection sensitive information.”
Lockheed Martin is the prime integrator for the odd-numbered Freedom-variant, built at Fincantieri’s Marinette Marine shipyard in Marinette, Wis. It won the contract for LCS-29. Austal builds the even-numbered Independence-variant LCSs at its shipyard in Mobile, Ala., and won the contract for LCS-32 and LCS-34.
The Austal LCS work will mostly occur in Mobile, (61 percent), Pittsfield, Mass (20 percent), and Cincinnati, Ohio (4 percent) while Lockheed Martin’s work will occur in Marinette (40 percent) and in various other parts of the U.S.
“These contract awards represent an important next step in delivering critical warfighting capability to the Fleet,” said Capt. Mike Taylor, LCS program manager (PMS-501) at Program Executive Office Unmanned and Small Combatants (PEO USC).
The work for both contracts is expected to be finished by September 2024. The Navy said the modifications were awarded through a limited competition between the two companies.
LCS-32 and -34 will be the 16th and 17th Independence-variant ships. Austal said winning two LCSs is a sign the Navy has confidence in its design.
“To be awarded these Independence-variant contracts in such a highly competitive environment is a great honor,” Austal USA president Craig Perciavalle, said in a statement.
The company noted the specific value of the contract remains under a congressional cost cap of $584 million per vessel.